Off the wire
• Tanzania marks 50th anniversary of maiden official visit by Zhou Enlai  • French PM pledges "no halt to reforms" despite criticism  • At least 14 killed in suicide car bomb attack in Iraq  • S. Sudan rebels claim seizure of oilfields in Unity State, gov't denies  • UN chief calls on all Yemeni parties to engage in consultations  • Gaza militants fire rocket at southern Israel  • Egypt, Russia hold joint naval training to boost military cooperation  • Jose Graziano da Silva re-elected FAO Director-General  • About 3660 Syrians refugees swarm into Turkey in fresh exodus from Kurds-IS clash  • Jordan, Palestine plan logistics zone to facilitate trade  
You are here: 　 Home

Moody's gives negative outlook for Finland but keeps triple A rating

Xinhua, June 7, 2015 Adjust font size:

The US credit rating agency Moody's has revised the outlook for Finland from stable to negative, but has maintained the credit rating of the country at AAA, Finnish media reported on Saturday.

As the reasons for maintaining the top credit rating, Moody's gave the combination of fiscal prudence and institutional strength in Finland. It also mentioned a broad political commitment to fiscal consolidation and economic renewal.

The agency said it could downgrade Finland in the event that growth continues to be slow and the new government would not be able to slow down the growth of debt.

Commenting on the result, chief economist of the OP-Pohjola Group, Reijo Heiskanen, told Finnish newspaper Helsingin Sanomat on Saturday that the programme of the new Finnish government gives "in principle" a good basis for growth in the economy.

He also said a decline on the outlook given by agencies does not directly lead to a downgrading in the credit ratings they give.

Heiskanen said he would like to use the term "stagnation" to describe the Finnish economy. Under stagnation, economy only grows a little and the situation continues for years. "Such a situation is difficult to disengage from," he added. Endit